diff --git a/controllers/templatesync/template_sync.go b/controllers/templatesync/template_sync.go
index 3b3ecfae..d326a4c5 100644
--- a/controllers/templatesync/template_sync.go
+++ b/controllers/templatesync/template_sync.go
@@ -280,7 +280,11 @@ func (r *PolicyReconciler) Reconcile(ctx context.Context, request reconcile.Requ
 		// Gather raw object definition from the policy template
 		object, gvk, err := unstructured.UnstructuredJSONScheme.Decode(policyT.ObjectDefinition.Raw, nil, nil)
 		if err != nil {
-			resultError = err
+			// If it's missing the Kind, don't requeue since that requires an update to the Policy
+			if !runtime.IsMissingKind(err) {
+				resultError = err
+			}
+
 			errMsg := fmt.Sprintf("Failed to decode policy template with err: %s", err)
 
 			_ = r.emitTemplateError(ctx, instance, tIndex, fmt.Sprintf("template-%v", tIndex), false, errMsg)
diff --git a/test/e2e/case10_error_test.go b/test/e2e/case10_error_test.go
index ca79086a..aea9ae62 100644
--- a/test/e2e/case10_error_test.go
+++ b/test/e2e/case10_error_test.go
@@ -315,7 +315,7 @@ var _ = Describe("Test error handling", func() {
 		By("Creating the ConfigurationPolicy on the managed cluster directly")
 		_, err := kubectlManaged(
 			"apply",
-			"--filename=../resources/case10_template_sync_error_test/working-policy-configpol.yaml",
+			"--filename="+yamlBasePath+"working-policy-configpol.yaml",
 			"--namespace="+clusterNamespace,
 		)
 		Expect(err).ShouldNot(HaveOccurred())
@@ -353,6 +353,27 @@ var _ = Describe("Test error handling", func() {
 			1,
 		).Should(BeTrue())
 	})
+	It("should only generate one event for a missing kind", func() {
+		policyName := "case10-missing-kind"
+		hubApplyPolicy(policyName,
+			yamlBasePath+"missing-kind.yaml")
+
+		By("Checking for the error event and ensuring it only occurs once")
+		Eventually(
+			checkForEvent(
+				policyName, "Object 'Kind' is missing in",
+			),
+			defaultTimeoutSeconds,
+			1,
+		).Should(BeTrue())
+		Consistently(
+			getMatchingEvents(
+				policyName, "Object 'Kind' is missing in",
+			),
+			defaultTimeoutSeconds,
+			1,
+		).Should(HaveLen(2))
+	})
 })
 
 // Checks for an event on the managed cluster
@@ -381,3 +402,31 @@ func checkForEvent(policyName, msgSubStr string) func() bool {
 		return false
 	}
 }
+
+// Checks for an event on the managed cluster
+func getMatchingEvents(policyName, msgSubStr string) func() []string {
+	return func() []string {
+		eventInterface := clientManagedDynamic.Resource(gvrEvent).Namespace(clusterNamespace)
+
+		eventList, err := eventInterface.List(context.TODO(), metav1.ListOptions{
+			FieldSelector: "involvedObject.name=" + policyName,
+		})
+		if err != nil {
+			return []string{}
+		}
+
+		matchingEvents := []string{}
+		for _, event := range eventList.Items {
+			msg, found, err := unstructured.NestedString(event.Object, "message")
+			if !found || err != nil {
+				continue
+			}
+
+			if strings.Contains(msg, msgSubStr) {
+				matchingEvents = append(matchingEvents, msg)
+			}
+		}
+
+		return matchingEvents
+	}
+}
diff --git a/test/resources/case10_template_sync_error_test/missing-kind.yaml b/test/resources/case10_template_sync_error_test/missing-kind.yaml
new file mode 100644
index 00000000..057e5e13
--- /dev/null
+++ b/test/resources/case10_template_sync_error_test/missing-kind.yaml
@@ -0,0 +1,17 @@
+apiVersion: policy.open-cluster-management.io/v1
+kind: Policy
+metadata:
+  name: case10-missing-kind
+  labels:
+    policy.open-cluster-management.io/cluster-name: managed
+    policy.open-cluster-management.io/cluster-namespace: managed
+    policy.open-cluster-management.io/root-policy: case10-missing-kind
+spec:
+  remediationAction: inform
+  disabled: false
+  policy-templates:
+    - objectDefinition:
+        spec:
+          object-templates:
+            - metadata:
+                labels: {}